DWP benefit: Carer’s Allowance set to rise by £109 in April but thousands are missing out | Personal Finance | Finance
The benefit, which is paid by the Department for Work and Pensions (DWP), will increase in-line with the Consumer Price Index (CPI). CPI measures the average change in prices over time that consumers pay for a basket of goods and services.
Payments will increase by £2.10 per week, which over the course of the year amounts to £109.20.
Carer’s Allowance is currently paid at a weekly rate of £67.60.
It will rise to £69.70 from April 11, 2022.
Carer’s Allowance recipients will see the benefits earnings limit rise £132 per week if they look after someone for 35 hours per week.
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However people do not get paid extra if they care for more than one person.
To be eligible for Carer’s Allowance, claimants must be looking after someone who is already on certain benefits.
These benefits include the daily living component of the Personal Independence Payment, the middle or highest care rate of Disability Living Allowance or Attendance Allowance.
This type of care someone can offer includes cooking, cleaning, managing household bills, shopping and taking the person the carer is looking after to doctors appointments.
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If their pension is less than £67.60 a week, they’ll get a Carer’s Allowance payment to make up the difference.
For those Britons getting Pension Credit, if their state pension is more than £67.60 a week, they will not get a Carer’s Allowance payment but their Pension Credit payments will increase instead.
Helen Walker, the Chief Executive of Carers UK, explained that more needs to be done to support unpaid carers.
She said: “Whilst we are pleased that the earnings limit has risen, it has only done so in line with CPI and not wage inflation which we know is far higher.
“This will mean many carers making tough decisions to either reduce work or leave work altogether.
“Despite the rise, carers are still losing out on working hours year on year as increases have not kept pace with the National Living Wage or average wage rises.
“This is completely counter to the Government’s objective to make work pay. What we need urgently is a system that legislates for a year-on-year rise, in line with at least 16 times the National Living Wage.
“This would allow carers to remain in work which is so important for carers’ income and finances in the short and longer term – and many also want to work.”
